"Markets detest uncertainty, so this is spectacular news that removes one of the biggest obstacles to US economic growth and prosperity and better financial market conditions," said Chris Rupkey, chief financial economist at the MUFG.
In the coming months, legislators will have to vote to pay off the debt that America owes. Otherwise, the United States may default on debt payments. This could signal that America will not reimburse its creditors, potentially sending a shock through the US Treasury market, which the government relies on to finance its programs and offset its huge budget shortage.
The closing agreement offers investors the hope that politicians will not shoot once again when the stakes are potentially much higher.
Oil moves higher
OPEC, the oil cartel headed by Saudi Arabia, announced Tuesday that it would cut the production of 800,000 barrels a day. This has eased investor concerns that a global economic slowdown would continue to hurt demand and that oil producers are not doing enough to slow down production.
The price of US crude rose 2% on Tuesday to $ 53.56 a barrel.
Oil has increased in recent weeks after the United States has sanctioned Venezuela, a major supplier of crude oil all over the world. The sanctions against Iran have also supported oil prices.
But the increase in crude oil production in the United States has weighed on oil in the last year. However, oil prices could increase between 10% and 15% this year due to OPEC production cuts and sanctions, Francisco Blanch, head of global commodity research at Bank of America Merrill Lynch told Julia Chatterly about CNNi's "First Move". 19659006] Energy stocks have gathered. Hess ( and ) Devon Energy ( each jumped almost 3%. )